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How the blockchain service network could help boost the development of a CBDC in China 

How the blockchain service network could help boost the development of a CBDC in China 
  • The debate of whether cryptocurrency is, or should be, considered legal tender is an age-old argument. 
  • Looking into China, the government doesn't really believe that crypto is a legitimate form of finance and they are instead categorised under a specific type of “virtual community.” 

The debate of whether cryptocurrency is, or should be, considered legal tender is an age-old argument. Looking into China, the government doesn't really believe that crypto is a legitimate form of finance and they are instead categorised under a specific type of “virtual community.” 

That being said, some veterans in the industry believe that the BSN (Blockchain service network) infrastructure could help boost the development of digital currencies such as a CBDC.

Eden Dhaliwal, the global managing director at Conflux network recently spoke in an interview with Cointelegraph where he said that the government in China is clearly motivated to launch one of these assets in order to dominate the digital commerce industry.

For those that don’t know, BSM is a massive blockchain infrastructure network that announced this year the decision to split the governance of the BSN into two ecosystems. This will include BSN China and BSN International. Giving his thoughts on this separation, Dhaliwal said the following:

“BSN most likely split in order to make the network regulatory compliant, more secure and economically stable, without losing the functionalities of public blockchain networks. (…) This two-tiered ecosystem ensures capital and asset flow across chains and countries without compromising on the trustworthiness of the network.”

In order to reach the scale and adoption for retail users according to Dhaliwal, the network would need to implement a wide range of public chains in order to create innovation and international use of Cryptocurrency and digital assets.

“As one of BSN’s key mandates is to advance the blockchain ecosystem in China, implementing private chain solutions enables a focus on limited enterprise and government use cases.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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